While the homeownership rate for non-Hispanic Whites stands at 76%, it’s a lower 46% for Black Americans. [Unbelievably, that’s a 0% change since the fair housing act] A recently-introduced bill called The American Dream Down Payment Act of 2020 seeks to close this 30% gap by helping Black Americans save for a down payment on their first home. Senators Sherrod Brown of Ohio, Doug Jones of Alabama, and Cory Gardner of Colorado introduced the American Dream Down Payment Act of 2020 in Washington, DC on August 5 (is this Bi-Partisan). If passed, this bill would allow Black Americans (only???) to create a savings account for a down payment (not closing costs, just down payment? Can it be stacked with other downpayment or closing costs programs), where they could place up to $12,000 per year (let’s get into the weeds on how this works, is it a pre-tax deduction from a paycheck. Is there interest? Wy would it be better than a 401k? How does this compare to health deduction?). These savings would also be tax-free, as long as they are spent on a down payment in the future (not even taxed when deployed at closing). The Urban Institute says that the inability to save enough money for a down payment is one of the major barriers that prevents Black Americans from being able to purchase their first home (can we include quote or chart). Passage of The American Dream Down Payment Act of 2020 could be exactly what they need to get a head start in saving and preparing. Like a college savings plan, parents would also be able to contribute to a down payment fund for their children (this is great and should be a focus, how much would a parent need to contribute from a kid annually from day one). National Association of Real Estate Brokers (NAREB) is a minority real estate trade group, who noted in their 2018 State of Housing in Black America report that a legislative act like this could be a solution to increase black homeownership. Donell Williams, NAREB president, says that the American Dream Down Payment Act would “serve as a long-awaited lifeline, especially for Young Black Americans and their parents who want to help their children get a head start on building financial security.” “The economic health of Black Americans strengthens the entire national economy and that of the states where Black Americans reside,” Williams said. “We are gratified that Senators Brown, Jones, and Gardner understand the significance and importance of expanding opportunity for Black Americans to achieve the American Dream of homeownership.” The Asian American Association of America, FHLBank of San Francisco, Mainstreet Alliance, National Association of Affordable Housing Lenders (NAAHL), National Association of Realtors (NAR), National Association of Real Estate Brokers (NAREB), National Business League, National Community Reinvestment Coalition (NCRC), National Fair Housing Alliance (NFHA), and National Housing Conference (NHC) all support the bill. (Get quote from these organization and link to them)